NAME

ROLL
NO

Pooja Dutt

1411008323

1 Discuss the principles of Management by Henri Fayol.

Describe the principles of Management by Henri Fayol
Answer: 14 Principles of management by Henri Fayol
1. Division of labor: Work should be divided among individuals and groups to
ensure that effort and attention are focused on special portions of the task.
Fayol presented work specialization as the best way to use the human
resources of the organization.
2. Authority and responsibility coexist: The concepts of Authority and
responsibility are closely related. Authority was defined by Fayol as the right
to give orders and the power to exact obedience. Responsibility involves
being accountable, and is therefore naturally associated with authority.
Whoever assumes authority also assumes responsibility.
3. Unity of command: This means that one person should report to only one
boss. This principle has undergone considerable changes, and we now have
ideas like adhocracy or matrix organizations where a person may report to
multiple bosses. However, the principle stands in good stead.
4. Unity of direction: The entire organization should be moving towards a
common objective in a common direction.
5. Equity: Equity is a combination of fairness, justice, and empathy. It does not
mean absence of assertive action rather existence of it to ensure fairness for
all. This does not mean giving all the same reward but rewarding according to
ones effort. In fact, the idea of productivity based incentives emanates from
the principle of equity.
6. Order: In the case, we saw how the service staff was moving around
smoothly and doing their job. You might have observed how things are kept in
order in a Maruti Genuine Workshop as against a wayside workshop.
Appointing the most suitable person for a job is also part of this principle of
order. In other words, it means doing things systematically.
7. Discipline: Having clearly defined the superiors, subordinates, norms,
procedures, rules, and regulations, adherence to these is an essential
principle of management. This enhances productivity by increasing the
harmony in the workplace activities.
8. Initiative: When the workers are encouraged to do things which are not
strictly defined but which add to the productivity, cost reduction, etc. which
are the objectives of management, the workers enjoy doing their job and
efficiency and effectiveness increase just like the front office manager who
took the initiative to negotiate full room tariff rather than yield to a request
for discount.
9. Fairness: For the sake of efficiency and coordination, all materials and
people related to a specific kind of work should be treated as equally as
possible.
10.
Stability: Retaining productive employees should always be a high
priority of management. Recruitment and Selection Costs, as well as
increased product-reject rates are usually associated with hiring new workers.

11.
Scalar chain: The flow of information and exercise of authority has to
flow in a chain from top to bottom. This does not mean a strict hierarchy, but
it means the existence of a clear flow. This flow may be and should be
circumvented during an emergency. This process enables one to coordinate
effort, create smoothness, plan, amend plans, and solve problems faster and
more efficiently.
12.
Subordination of individual interest to general interest:
Individuals draw their identity and livelihood from the organization. Others
also do that. Therefore, the organizational interest should supersede
individual interest because the former affect the interest of many
stakeholders.
13.
Esprit de corps: Management should encourage harmony and
general good feelings among employees.
14.
Centralization
and
decentralization:
Centralization
means
concentration of authority at the top level and decentralization means
delegating it to the lower levels. While absolute centralization or
decentralization is not feasible, the principle propagates finding the ideal
balance keeping in mind the size, nature of business, experience of superiors
and subordinates, dependability and ability of the subordinates, etc. This
principle permits people to solve problems speedily and efficiently and
enables taking initiative.
2 Discuss the pre-requisites of an Effective Control system.
Explain the pre-requisites of an effective control system
Answer: Prerequisites of Effective Control
Tailoring controls to plans and positions A control is exercised on an
activity or a group of activities. It follows that what control is good for a
position may not be relevant for another e.g., the Vice President of marketing
and the Vice President of operations cannot have the same controls though
both maybe based on a financial control system. E.g., the outlet manager of
Sambhavi can have a control based on ROI, but the snack counter manager
needs to have it based on per customer revenue rather than ROI.
Tailoring controls to individual manager Controls have to be adjusted
to the individual managers capability also. If someone does not understand a
control, he/she will not trust it or use it as a result of which it will become
dysfunctional.
Designing point to the exceptions at critical point If a control has to
be effective, it must control the exception and that too at the critical point.
Objectivity of controls Many management actions are subjective, but
when controls are created, they must be objective, accurate, and must suit a
standard. While this may be relatively easy in machine related systems and
financial related indicator, we have to be careful when we have to relate it to
the intangible areas. For example, how would you have controls for the kid
care manager in Sambhavi outlets?
Flexibility Controls must be flexible to include the changed plans,
unforeseen circumstances, or outright failure. For example, Sambhavi may
use budget control to say the inventory level but if the sales are significantly
higher or lower, there should be flexibility in the control. Suppose we define

the inventory per rupee of cost of production or per kilogram of production. It

would be flexible to control it using an annual budgetary control or average
inventory based on earlier data.
Fitting to the organisational culture Imagine putting tight control over
Sambhavi whose culture is family-like and open with the freedom to
experiment. The control will most certainly affect the culture which to begin
with is the competitive advantage of Sambhavi. Therefore, it must fit the
culture. If you have a tight and bureaucratic system, a lose control will also
not work.
Economy of controls Controls must be worth their costs. Creating controls
which are excessively expensive is counter-productive. For example, we
cannot have the same controls in an aircraft and a car.
Ability to lead to corrective action The control should lead to corrective
action. Only then it closes the loop and leads to better performance. For
example, if the ROI of an outlet is below the standards specified, there should
be a review system, which detects the sections that have not contributed
their part and have exceeded it so that the performance can be corrected or
rewarded.

3 Define Personality. Discuss the factors that determine personality

development.
Definition of Personality
Explain the factors that determine personality development
Answer: Personality can be defined as a dynamic and organised set of
characteristics possessed by a person which uniquely influences his/her knowledge,
motivations and behaviour in various situations. According to Pervin, Cervone &
John, (2005), personality refers to those characteristics of the person that account
for consistent patterns of feelings, thinking and behaving. In other words,
personality is the set of psychological traits and mechanisms within the individual
that are organized and relatively enduring and that influence his/her interactions
with and adaptations to physical and social environments and his/her own psyche .
Following are the factors that determine personality development:
Heredity The relationship of heredity with personality is a well accepted
fact. Traits like physique, eye colour, hair colour, height, temperament,
energy level, intelligence, reflexes, etc. are generally referred to describe the
influence of heredity in developing personality. The heredity approach argues
that the ultimate explanation of an individuals personality is the structure of
the genes. Identical twin and other studies have not confirmed this fully,
however genetic influence is fairly well accepted.
Environment Environment comprises of culture, family, social and
situational factors. The environmental factors influence the personality of an
individual since they provide the basis for certain experiences that determine
an individuals view about life, both positive and negative.
Culture Culture establishes norms, attitudes and values that are passed on
from generation to generation and create consistencies over time. Every
culture expects and trains its members to behave in the ways that are

acceptable to the group. People from different cultural groups have different
attitudes towards independence, aggression, competition, cooperation,
artistic talent, etc. While this appears to have a strong influence, studies on
this count are not conclusive.
Family One of the most important determinants of the personality of a
person is the immediate family. Families influence the behaviour of a person
especially in the early stages of life. The nature of such influence will depend
upon the socio-economic level of the family, family size, race, religion,
parent's educational level and geographic location. Though it may not be
conclusive, the immediate family seems to have a strong impact on the
personality.
Situation Every individual goes through different types of experiences and
events in his/her life. Some of the events and experiences, which an
individual goes through in his/her life, can serve as important determinants of
his/her personality. A trauma suffered by a person during his/her childhood
can sometime change the structure of his/her own personality. This too is not
conclusive.
Social factors Socialisation starts with the initial contact between a
mother and her new infant. After infancy, other members of the immediate
family father, brothers, sisters and close relatives or friends, then the social
group such as peers, school friends and members of the work group play
influential roles. This is called socialisation process. There is an increasing
recognition given to the role of other relevant persons, groups and especially
organisations, which greatly influence an individual's personality.

4 Discuss the concept of Attitude. Describe the components and functions

of Attitude.
Explain the concept of Attitude
Explain the components of Attitude
Explain the functions of Attitude
Answer: An attitude is the predisposition of the individual to evaluate some objects
in a favourable or an unfavourable manner. The most pervasive phenomenon is
"attitude." People at work place have attitudes about lots of topics that are related
to them. These attitudes are firmly embedded in a complex psychological structure
of beliefs. Attitudes are different from values. Values are the ideals, whereas
attitudes are narrow. They are our feelings, thoughts and behavioural tendencies
toward a specific object or situation. Attitude is a predisposition to respond to a
certain set of facts. Attitudes are evaluative statements either favourable or
unfavourable concerning the objects, people or events.
Components of attitude
Cognition. This represents our thoughts, beliefs and ideas about something.
Typically these come to light in generalities or stereotypes, such as 'all
teenagers are lazy,' or 'all babies are cute.'
Affect. This component deals with feelings or emotions that are brought to
the surface about something, such as fear or hate. Using our above example,
someone might have the attitude that they hate teenagers because they are
lazy or that they love all babies because they are cute.

Behavior. This component refers to the individual's behaviour that occurs as

a result of his or her feeling about the focal person, object or situation. An
individual may complain, request a transfer, or be less productive because he
or she feels dissatisfied with work. The behavioral component of an attitude
refers to an intention to behave in a certain way toward someone or
something.

Functions of attitude
Adjustment function. Attitudes often help people to adjust to their work
environment. Well-treated employees tend to develop a positive attitude
towards their job, management and the organization in general, while
berated and ill treated organizational members develop a negative attitude.
In other words, attitudes help employees adjust to their environment and
form a basis for future behavior.
Ego-defensive function. Attitudes help people to retain their dignity and
self-image. When a young faculty member who is full of fresh ideas and
enthusiasm, joins the organization, the older members might feel somewhat
threatened by him/her. But they tend to disapprove his creative ideas as
crazy and impractical and dismiss him/her altogether.
Value-expressive function. Attitudes provide individuals with a basis for
expressing their values. For example, a manager who values hard and sincere
work will be more vocal against an employee who is having a very casual
approach towards work.
Knowledge function. Attitudes provide standards and frames of reference
that allow people to understand and perceive the world around them. If one
has a strong negative attitude towards the management, whatever the
management does, even employee welfare programmes, can be perceived as
something bad and as actually against them.
5 Discuss the three stages of Stress. Explain the reasons for stress.
Describe the stages of Stress
Explain the reasons for developing stress.
Answer: Stress has three stages namely:
Alarm stage In todays busy life, when we begin to experience a stressful
event or perceive something to be stressful, certain physiological changes
occur in our body. This experience or perception disrupts our bodys normal
balance and immediately our body begins to respond to the stressors as
effectively as possible.
Resistance In this stage, our body tries to cope or adapt to the stressors.
They start a process of repairing the damage caused by the stressors. A
change in our behavior can be noticed by our friends, family or co-workers.
Exhaustion In this stage, we are not able to manage the stressor
effectively. It becomes difficult to be normal. Our body and mind are not able
to repair the damage.
Reasons for stress

Inner conflicts Non-specific fears, anxiety, and guilt feelings maintain the
body in a state of readiness for emergency action on a continuing basis.
Perceptual influences Perception is influenced by a number of internal
factors. Certainly, people with inner conflicts sufficient to cause stress are
more likely than self-confident people to perceive environmental conditions
as threatening. Because the environment is presumed to be full of danger,
evidences of danger are perceived everywhere.
Task demands They include the design of the individual's job, working
conditions, and the physical work layout. Changes and lack of control are two
of the most stressful demands people face at work.
Lack of control This is the second major source of stress and may be due
to timing of tasks and activities. For example, to select tools or methods for
accomplishing the work, to make decisions that influence work outcomes, or
to exercise direct action to affect the work outcomes.
Role demands We have seen how roles affect job. In sum, they can be due
to clash of two roles, conflicting requirement due to two roles, and conflict
between the role demand and ethics and values of the role owner.
Inter-personal demands Lack of social support from colleagues and poor
interpersonal relationships can cause considerable stress, especially among
employees with a high social need. Abrasive personalities, sexual
harassment, and the leadership style in the organization are interpersonal
demands for people at work.
Physical demands Non-work demands also create stress. For example,
family demands. People have personal demands related to non-work,
organizational commitments such as religious and public service
organizations etc.

6 Write short notes on the following:

a)TOWS matrix
b)Porters Five Forces model
Concept of TOWS matrix
Concept of Porters five forces model

Answer: a) TOWS matrix - A modern tool for situation analysis

SWOT analysis, i.e., analysis of the companys Strength, Weaknesses, Opportunities,
and Threats, was a popular model. This, however, fails to look at it in a combined
way. For example, how does the opportunity of not having a bakery similar to
Sambhavi in other districts (an opportunity) combine with Sambhavis strength? To
service the customers in these districts, you need to have good logistics which
Sambhavi does not have (weakness). Combining these, we can say that Sambhavi
can give up the opportunity because of the weakness or make up the deficiency and
make use of the opportunity. So it can develop the logistic capability or collaborate
with another company which has good logistic capability in food and serve the
customers from other districts. This is what TOWS matrix does. T stands for Threat,
O for opportunity, W for weakness and S for Strength. It starts with T because

usually it is the threat that makes us sit back and plan (this is not to say that being
reactive is ideal).

b) Porters five forces model

Porter designed a five forces model to evaluate, plan, and decide on a strategy.

The five forces are

1) competition among companies which indicate the degree of competition, for
example, are there a lot of bakeries of this nature in Salem and neighboring
districts;
2) threat of new companies entering the market, which is high in this case since
you dont need any special capability except the capability to make good
bakery products,
3) the possibilities of using substitute products, for example, can people use
other eatable products than bakery products if they choose to,
4) bargaining power of the suppliers, for example, if there are no good raw
material suppliers for a bakery like Sambhavi, the purchase has to be made

anyway but if there are many good raw material suppliers, then Sambhavi
can bargain better, and
5) the bargaining power of the customers which is self explanatory.